SDWRLF Sustainable Infrastructure Planning
Projects(SIPP)
Financing for water system planning and related activities that
promote sustainable water infrastructure
SIPP Overview
• Funding up to $20,000 per project
• 100% forgivable loan
• A water system may be awarded SIPP funds once every three years:
– Exception can be made if Seismic SIPP funding is needed as part of a full master
planning effort in the same 3 year period, but may not result in two funding awards in a
single year.
– A water system may only receive SIPP funds once for each eligible activity identified in
the program overview document.
– Exceptions may be made on a case by case basis if funding allows.
SIPP Eligible Activities
• Feasibility Studies – studies to evaluate infrastructure project feasibility. Studies may also
include the evaluation of resiliency measures and continuity of operations, including
identification of needed infrastructure improvements.
To be eligible for future Safe Drinking Water Revolving Loan Fund financing, a feasibility study
should include the following elements:
– Analysis of project feasibility (e.g., engineering, regulatory, legal etc.)
– Analysis of project alternatives and the recommended option
– Estimate of project costs including materials, labor, contingency budget, and other
expenses adjusted for inflation depending on timeline
– Design and/or construction timeline
– Operational feasibility analysis including identification of costs for operation, maintenance
and long-term replacement of the water system
SIPP Eligible Activities
• Asset Management Plan – plan for managing water system infrastructure assets.
Planning activities must result in an adopted asset management plan intended to ensure
planned maintenance is conducted and capital assets can be repaired, replaced, or upgraded
on time and there is adequate money to pay for it. Planning activities can include inventories,
tracking systems, and integration of budget and accounting systems with the asset
management plan.
Asset management plans may also include creation of a geographic information system (GIS) to
document locations of water system infrastructure or compile other information. Any GIS work
must be accompanied by an management plan.
SIPP Eligible Activities• System Partnership Studies – studies to evaluate potential for system consolidation/regionalization.
Consolidation studies can include feasibility analysis of physical consolidation of one water system into another.
This often takes the form of a smaller system deciding it no longer wishes to be responsible for providing
drinking water and being physically consolidated into a larger system. The larger “receiving” water system would
then be responsible for providing water (typically through interconnection) to the smaller “subsumed” water
system.
Regionalization studies can include several local water systems working together to form a combined public
water system resulting in cost savings. Also eligible under system partnership studies engineering assessment
of interties to facilitate interlocal agreements for purchasing (e.g., wholesale) or selling water (for emergencies or
recurring basis).
While it is expected that all impacted water systems would be involved and kept apprised throughout the study,
only one $20,000 SIPP award may be awarded for any given system partnership study. Only one of the water
systems involved in the study may serve as the SIPP funding applicant.
SIPP Eligible Activities
• Water Rate Analysis – analysis of water system rate charges, structure, and adequacy.
– The analysis should determine the full cost of doing business by calculating current and
future costs and expenses, evaluate current revenues, rate structure options and design
an appropriate rate.
• Leak Detection Studies – studies to detect water system leakage and identify possible
solutions.
– Studies can include completion of water audits to identify and quantify water uses and
losses, leak detection activities, and identification of solutions to reduce or eliminate water
losses.
SIPP Eligible Activities• Water System Master Plans (for systems with less than 300 connections) – long-range
planning to evaluate the needs of the water system and make recommendations for future
improvements.
– Intended for small systems with less than 300 connections resulting in the creation of
comprehensive plan.
– For more details about the requirements and elements of a master plan, visit
OAR 333-061-0060(5).
• Seismic SIPP – Seismic Risk Assessment and Mitigation Plans
– Must result in creation of a Seismic Risk Assessment and Mitigation Plan required by OHA as part
of a full master plan submittal.
– Eligibility is limited to systems that serve 300 to 3,300 connections.
– For details about Seismic planning requirements visit OAR 333-061-0060(5)(a)(J).
– See details for funding eligibility requirements and access to the earthquake sensitive area map.
SIPP Application Process
• To be considered for rating and ranking, water systems must submit an application to
• Business Oregon Regional Development Officers are available to answer questions about the
program.
• OHA will post complete applications for a 10-day public notice period.
• Priority project applications will enter a financing contract with Business Oregon to complete
project activities.
SIPP Evaluation Criteria (100 pts.)
• (30 pts.) System Size – priority will be given to systems with less than 300 connections.
• (20 pts.) Capital improvement history – length of time since the most recent significant
improvement to the system was made.
• (20 pts.) Future project potential – reasonable expectation that activities funded will result in
a future infrastructure project.
• (20 pts.) Readiness-to-proceed – project activities must be ready to begin within 90 days of
award funding notification and completed within 1 year.
• (10 pts.) Priority deliverable – feasibility studies, asset management plans, and system
partnership studies will be given higher priority.
• Note: Seismic SIPP projects are not to be evaluated with the above criteria and are funded
on a first-come, first-serve basis.
Community Engagement
• Projects should consider activities that engage water system stakeholders such as:
– Stakeholder consultation about customer satisfaction or utility goals, objectives, and
management decisions.
– Compare water rates with similar water system types.
– Recruit community members.
– Spearhead public education.
– Open dialogue throughout a projects lifecycle.
– Community survey.
Why Plan for Sustainability?
• Minimize costs by optimizing investment choices, operating water systems more efficiently,
and pursuing cost-effective investment and management strategies.
• Maximize results of investments to ensure continual compliance, a reliable source of water,
treatment, storage, and distribution capacity, as well as financing capability.
• Garner greater support for the utility by aligning infrastructure choices with community values
and sustainability priorities.
• Ensure that financial and revenue strategies are adequate to finance, operate, maintain, and
replace essential infrastructure throughout its operational life for all community members.
SIPP Resources
• Oregon Resilience Plan (see chapter 8)
• Sustainable Practices for Water Utilities
• Planning for Sustainable Water Infrastructure
• Sustainable & Effective Practices for Creating Your Own Water Utility Roadmap
• Asset Management Resources for States and Small Drinking Water Systems
• Plan and Budget for Public Involvement
• Setting Small Drinking Water System Rates for a Sustainable Future